Acer Will Focus on Selling Low-Cost Notebooks

World's number 3 computer vendor, the Taiwanese company Acer will start selling low-cost notebooks later this year. The company's shift from the mid-range market to the low-end segment is motivated by the continuous demand in affordable notebooks. Other PC vendors, such as Asustek for instance, have sold millions of units and they are still facing strong demands.

Acer has previously stated that it won't enter on the low-end, cheap notebooks market, but the company reconsidered the options and will develop a new computer to aim at the common personal computer users. According to J.T. Wang, Acer chairman, the new model will focus on keeping an optimal balance between cost and performance, but cost will be the most critical aspect.

The Taiwanese manufacturer will launch the new model during either the second or the third quarter of 2008, as initially scheduled. The upcoming computer is still in the works, and most of its features are currently unclear. It will feature a 7- to 9-inch display and will hit the market at an estimative retail price of $470.

Asustek is Acer's arch-rival, and it managed to score fortunes by selling the $399 eye-candy Eee PC laptops. The company is still successful in the low-end market, although analysts claim that the profit margins in selling the sub-notebook are extremely thin.

Acer claimed that the new business opportunity will not cripple its current concerns towards more powerful notebook systems, because the low-budget alternatives will be aimed at low penetration markets, namely computer systems for children or for the emerging markets.